Singapore has enacted a sweeping new anti-scam law allowing police to intervene directly in individuals’ bank accounts to prevent suspected fraud, a move that underscores the city-state’s intensifying response to surging scam activity.
Under the Protection from Scams Act, which came into force Tuesday, law enforcement officers are authorized to instruct financial institutions to freeze bank accounts and restrict transactions if they believe a customer is being targeted by fraudsters—even if the customer does not acknowledge the scam.
The Ministry of Home Affairs (MHA) said the measure addresses a persistent challenge: victims often continue transferring funds despite repeated warnings, putting themselves at further risk. Singapore recorded a record S$1.1 billion (US$860 million) in scam-related losses in 2024, up dramatically from approximately 15,600 cases in 2020 to over 50,000 cases last year.
“The restriction order will only be issued as a last resort, after other options to convince the individual have been exhausted,” the MHA said in a statement, noting that input from family members may also be considered in making the decision.
How the Law Works
The police may block transfers, ATM access, and credit functions for up to 30 days initially, with the possibility of extending the restriction for up to five additional periods. Affected individuals may still use their funds for essential daily expenses, but only under police-supervised conditions.
While the government has framed the policy as a necessary tool to protect vulnerable individuals, some members of Parliament have expressed concern over its intrusiveness and potential for misuse. Proposals to introduce opt-out mechanisms or alternatives—such as allowing individuals to nominate a trusted party to trigger account blocks—were raised but not included in the final legislation.
Supporters argue that the financial and emotional costs of scams justify the level of intervention. Internet romance scams, bogus job offers, fraudulent e-commerce transactions, and fake investment schemes remain among the most prevalent in Singapore.
A Broader Regulatory Response
The legislation builds on a series of anti-fraud measures rolled out in recent years. In 2023, Singaporean banks introduced a “money lock” feature, allowing customers to ringfence funds that cannot be digitally transferred. Most financial institutions now also offer emergency kill switches, enabling users to suspend account activity instantly if they suspect a breach.
Implications for the Global Banking Sector
As fraud schemes grow in sophistication and volume across digital channels, Singapore’s approach may set a precedent for more proactive regulatory intervention in personal banking elsewhere. For financial institutions, the law introduces new compliance protocols and underscores the importance of fraud detection partnerships between banks and authorities.
Takeaway for Financial Professionals
For banks operating in or with exposure to Southeast Asia, this legislation signals a regulatory shift toward protective account control mechanisms that may raise both compliance demands and ethical considerations. Institutions will need to balance consumer autonomy with risk mitigation in fraud-prone environments.
